| Título: | MANAGING EXPOSURE OF DIRECT FOREIGN INVESTMENT TO POLITICAL RISK: THE CASE OF FOOD BUSINESSES IN CHINA |
| Autores: |
Liu, Yan Bjornson, Bruce |
| Fecha: |
2005-01-07 2007-03-07 2005-01-07 2007-03-07 1998 |
| Publicador: | AgEcon |
| Fuente: |
 |
| Tipo: | Journal Article |
| Tema: |
Agribusiness International Relations/Trade |
| Descripción: | Direct foreign investment (DFI) allows a multinational corporation (MNC) to generate and appropriate extra-normal profits from its unique assets in a foreign market. China has become increasingly attractive for foreign investment over the past 20 years. This entails political risk, but MNCs can reduce the risk by relying heavily on MNC-specific assets, often in the form of tacit knowledge. A joint venture with a local partner creates an incentive for a local stakeholder to shield the DFI from political risks and allows the partner to contribute location-specific assets to the venture, further reducing the MNCs risk. |
| Idioma: |
English en |
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